Wolters Kluwer survey cites maintaining compliance as a top concern among impacted U.S. Corporate Transparency Act reporting companies
Latest poll shows continuing questions in determining which organizations and beneficial owners are subject to new rule
Accurate reporting—and ongoing tracking of beneficial ownership status under the Corporate Transparency Act (CTA) represents the top compliance concern of businesses impacted by the new rule, according to new survey findings from Wolters Kluwer CT Corporation. In its May 2 webinar polling of more than 1,400 attendees, CT Corporation found that nearly 40% of respondents viewed keeping pace with ongoing reporting obligations as their top concern.
“Submitting a company’s initial beneficial ownership reporting data by the specified deadline in no way means that this process is a one-time occurrence,” said Rupak Venugopal, Vice President, Beneficial Ownership, Wolters Kluwer Financial & Corporate Compliance. “As 39% of poll participants indicated, compliance will require ongoing due diligence and vigilance in keeping beneficial ownership information current with respect to reporting.”
Other challenges cited by respondents include “Determining whether my business is subject to the reporting requirement,” at 25%, and “Identifying the beneficial owner(s) in an organization who are subject to the rule” at 24%. The remaining polling option, “Resource allocation of costs and staff time to gather and submit the required information,” was selected by 12% of respondents.
CT Corporation conducted audience polling in conjunction with BOI compliance webinars it held in January 2024 and November 2023. The May 2 webinar marks the first time that attendees were asked to identify their biggest concerns around BOI compliance.
Since last November’s polling, overall readiness levels for CTA compliance have shown modest increases: the percentage of those confident that their organizations were at least 75% prepared rose from 15% in November, to 29% in January, to 33% in May’s polling, while 9% percent of respondents in May’s webinar considered their organizations fully ready to comply, an uptick from 7% in January and 3% in November 2023.
The percentage who perceive their organizations as “Not at all ready” to comply decreased from 38% in November to 16% in May.
CT Corporation offers a suite of BOI solutions to help businesses of all sizes meet their ongoing reporting obligations. Its Beneficial Ownership Platform securely stores and retains BOI filing information, making both multiple entity filings and amendments much less time-consuming. CT Corporation is now an authorized API filing participant for the U.S Treasury’s Financial Crimes Enforcement Network (FinCEN). The CT technology connects directly to FinCEN via the API, enabling the upload of thousands of filings in real time to FinCEN in a compliant, secure manner.
For more information on navigating the BOI reporting requirements, visit “Beneficial Ownership Information Compliance from CT Corporation.”